The recent lowering of Taiwan’s gross domestic product (GDP) growth to 1.42% in 2023 is expected to affect the year-end bonuses given by companies. That’s according to a report released by one of Taiwan’s job banks on Wednesday.
Online human resource firm 104 Job Bank (104人力銀行) released a 2023 - 2024 report on salaries and bonuses showing the scale of the year-end bonuses for this year has shrunk significantly, with an average of only a 1.08-month bonus for this year, a 10 year low.
104 General Manager of HR Academy Business Group Stanley Hua (花梓馨) shared his analysis saying that this year’s economic growth is not as strong compared to previous years. Coupled with inflationary pressures, sluggish global demand for finished goods, and economic uncertainty, these all affect corporate profits which in turn, affect the year-end bonuses.
The report pointed out that the highest year-end bonuses are generally paid out in the financial sector at 1.83 months, which has remained the highest for 12 consecutive years. This is followed by the semiconductor industry at 1.38 months, the construction industry at 1.23 months, and the hospitality sector at 0.59 months.